In two years Brandon plans to enroll at Umpqua University,a prestigious university in the Pacific Northwest of the USA.If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year,how much will Brandon pay in tuition his first year of school? (His first tuition payment is exactly two years from today.)In his fourth year? (His last tuition payment is exactly 5 years from today)(Rounded to the nearest dollar.)
A)$23,500 and $29,668
B)$26,405 and $29,668
C)$23,500 and $31,448
D)$26,405 and $31,448

Question

Quizplus · Accepted Answer

To find Brandon's tuition payment in his first year of school, we need to calculate the current tuition plus the 6% increase:
Tuition in 2 years = $23,500 * 1.06 = $24,910
Therefore, Brandon will pay $24,910 in his first year of school.

To find Brandon's tuition payment in his fourth year of school (his last tuition payment is exactly 5 years from today), we need to calculate the current tuition plus three 6% increases:
Tuition in 4 years = $23,500 * 1.06^3 = $29,667.95
Therefore, Brandon will pay $29,668 in his fourth year of school.

The closest answer choice is D, which matches both calculations.

In Two Years Brandon Plans to Enroll at Umpqua University,a